Tuesday, January 19, 2016

KIAL May Float Shares Worth Rs 30 Crore in the Market

Those who had spurned the chance to invest in the Kannur International Airport Limited (KIAL) might soon get a second opportunity. The KIAL management may float public shares worth Rs 30 crore in the market soon to generate additional funds.

KIAL is the second airport in the state being implemented under the Public-Private-Partnership (PPP) after the Cochin airport.
An investor will have to subscribe to a minimum 500 shares worth Rs 100 apiece. However, KIAL MD G Chandramouli told Express that the state government has not taken any such decision yet. “KIAL is looking into alternative investment options as per the board decision,” said Chandramouli. The project is expected to cost Rs 1,892 crore. The reluctance of Airport Authority of India (AAI) to increase its stake from the present 10% may have prompted the management to consider other sources of funding.
Capital of the company coming from the issue of shares has been fixed at Rs 1,000 crore. As per the documents on the KIAL website, the equity capital of KIAL has been stipulated at Rs 1000 crore with 26% earmarked to AAI. However, as per the status report of December 31, 2015, the AAI has invested only Rs 100 crore (around 10%), creating a shortfall of Rs 160 crore.
19/01/16 Unnikrishnan S/New Indian Express
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